Hope Bancorp Profit Margin vs. Current Valuation
| HOPE Stock | USD 13.57 0.21 1.57% |
Hope Bancorp Net Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 1.02 | 1.72 |
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| Net Profit Margin | 0.19 | 0.2339 |
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| Operating Profit Margin | 0.66 | 0.3459 |
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| Pretax Profit Margin | 0.29 | 0.3113 |
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| Return On Assets | 0.012 | 0.007 |
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| Return On Equity | 0.0599 | 0.063 |
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For Hope Bancorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hope Bancorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hope Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hope Bancorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hope Bancorp over time as well as its relative position and ranking within its peers.
Hope |
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hope Bancorp. If investors know Hope will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hope Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.20) | Dividend Share 0.56 | Earnings Share 0.84 | Revenue Per Share 4.018 | Quarterly Revenue Growth (0.11) |
The market value of Hope Bancorp is measured differently than its book value, which is the value of Hope that is recorded on the company's balance sheet. Investors also form their own opinion of Hope Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Hope Bancorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hope Bancorp's market value can be influenced by many factors that don't directly affect Hope Bancorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hope Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hope Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hope Bancorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Hope Bancorp Current Valuation vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hope Bancorp's current stock value. Our valuation model uses many indicators to compare Hope Bancorp value to that of its competitors to determine the firm's financial worth. Hope Bancorp is rated below average in profit margin category among its peers. It is rated as one of the top companies in current valuation category among its peers reporting about 5,574,117,584 of Current Valuation per Profit Margin. At present, Hope Bancorp's Net Profit Margin is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Hope Bancorp by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Hope Current Valuation vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Hope Bancorp |
| = | 0.21 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Hope Bancorp |
| = | 1.17 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Hope Current Valuation vs Competition
Hope Bancorp is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 7.43 Billion. Hope Bancorp retains roughly 1.17 Billion in current valuation claiming about 16% of equities under Financials industry.
Hope Bancorp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hope Bancorp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hope Bancorp will eventually generate negative long term returns. The profitability progress is the general direction of Hope Bancorp's change in net profit over the period of time. It can combine multiple indicators of Hope Bancorp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -204.7 M | -194.5 M | |
| Operating Income | 197.7 M | 147.9 M | |
| Income Before Tax | 177.9 M | 106.4 M | |
| Total Other Income Expense Net | -19.8 M | -20.8 M | |
| Net Income | 133.7 M | 79.8 M | |
| Income Tax Expense | 44.2 M | 34.9 M | |
| Net Income Applicable To Common Shares | 251 M | 263.6 M | |
| Net Income From Continuing Ops | 158.9 M | 142.2 M | |
| Net Interest Income | 550.5 M | 511.1 M | |
| Interest Income | 1 B | 675.7 M | |
| Change To Netincome | 226.5 M | 237.8 M | |
| Net Income Per Share | 1.11 | 0.66 | |
| Income Quality | 3.54 | 3.72 | |
| Net Income Per E B T | 0.75 | 0.73 |
Hope Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hope Bancorp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hope Bancorp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hope Bancorp's important profitability drivers and their relationship over time.
Use Hope Bancorp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hope Bancorp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hope Bancorp will appreciate offsetting losses from the drop in the long position's value.Hope Bancorp Pair Trading
Hope Bancorp Pair Trading Analysis
The ability to find closely correlated positions to Hope Bancorp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hope Bancorp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hope Bancorp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hope Bancorp to buy it.
The correlation of Hope Bancorp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hope Bancorp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hope Bancorp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hope Bancorp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Hope Bancorp position
In addition to having Hope Bancorp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Risk vs Return Analysis. For information on how to trade Hope Stock refer to our How to Trade Hope Stock guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
To fully project Hope Bancorp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hope Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hope Bancorp's income statement, its balance sheet, and the statement of cash flows.